Recognition and reporting of suspicious transactions

(1) Where there is suspicion that the source of funds may be criminal or that a client may be involved in criminal activity, IFS Practitioners shall follow established procedures for assessing the evidence and determining what course of action should be pursued. (2) IFS Practitioners shall, depending on the nature of the suspicion, decide whether or not they can continue the business relationship or whether they should subject it to particular scrutiny or undertake further investigation, and consideration shall be given to whether or not it is appropriate to make a report to the Supervisory Authority. (3) An IFS Practitioner shall make a report in any case in which he knows that funds are connected with criminal activity. (4) IFS Practitioners shall be aware that suspicions shall depend upon the nature of the relationship and the transaction and the particular circumstances of each case, and there is no one test that may be applied to determine what constitutes a suspicious transaction but an understanding of the client’s business and adequate record keeping shall facilitate the assessment. (5) For the purpose of clarification, unsatisfactory explanation or lack of commercial rationale, unusual patterns of transactions and inconsistency with the client’s business may be indicia that a transaction or a series of transactions should be subjected to particular scrutiny. (6) IFS Practitioners shall have internal procedures to ensure that suspicions about the source of funds or transactions are reported to the Supervisory Authority and they shall be aware of the importance of co-operation with the Supervisory Authority (7) All IFS Practitioners shall keep records of reports made by their staff and of reports made to the Supervisory Authority. (8) Where a report has been made to the Supervisory Authority, IFS Practitioners and their staff shall be aware of the dangers of impeding an investigation into money laundering or other criminal activity by tipping off the client or others. (9) IFS Practitioners shall cooperate fully with law enforcement authorities and the Commission to ensure that money laundering or other criminal activities are fully investigated and prosecuted.